Nissan Motor Company (7201T and NSANY ADR)* today announced financial results for the full year and the fourth quarter of the Japanese fiscal year 2024, ending 31 March 2025. During FY2024, global sales remained at 3.346 million units impacted by “intensified sales competition.” Nissan’s consolidated net revenue was ¥12.6 trillion yen, resulting in an operating profit of ¥69.8 billion with a razor thin operating margin of 0.6%. Net loss was, gasp, ¥670.9 billion (~$4.5 billion), which is improved from its previous forecast of a net loss of ¥700 – ¥750 billion for fiscal year 2024. Free cash flow and operating profit in the automotive business were both negative, automotive net cash was ¥1.498 trillion. (Based on average exchange rates of 153 JPY /USD and 164 JPY /EUR for FY2024.)
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“In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,” said Ivan Espinosa, Nissan President and CEO.
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Nissan said that it plans more than 10,000 global job cuts. This adds to 9000 cuts announced previously. Bottom line – Nissan will cut its workforce by ~15%. Nissan now wants to cut ¥500 billion in annual fixed and variable costs. It will also reduce its number of manufacturing bases to 10 from 17.
Ominously, Nissan said it will “temporarily pause advanced and post-FY26 product activities to mobilize 3000 people to focus on cost reduction initiatives. “This reprioritization was made possible through the company’s swift implementation of a shortened development process that reduces lead time and ensures no delays in product launches,” Nissan claimed.
A key aspect of this transformation involves rethinking the supply chain. Nissan will restructure its supplier panel to secure more volume for fewer suppliers, eliminating inefficiencies and challenging legacy standards.
Nissan’s new market-specific approach will position “the U.S., Japan, China, Europe, Middle East and Mexico as key markets and adopt a customized approach to other markets.
- In the U.S., it includes addressing rapidly expanding segments such as hybrids and revitalizing the Infiniti brand through synergies with the Nissan brand.
- In Japan, expansion of model coverage will contribute to reinforcing the brand in its home market. The approach in China will focus on enhancing domestic performance with NEVs (new electric vehicles). Also exports from China will support catering to diverse and global needs.
- In Europe, the focus will be on B and C segment SUVs. Nissan will leverage partnerships with the Renault Group and partners from China to further diversify offerings.
- In the Middle East, the company will focus on large SUVs while exploring products from China to enhance competitive offerings.
- Mexico will continue to serve as an important export hub, contributing significantly to profit and growth,” Nissan said.
Reinforce Partnerships
Nissan said it will collaborate with partners to deliver models that complement its portfolio and meet unique market needs. Several projects with its alliance partners, Renault and Mitsubishi Motors (MMC) are underway, including the recently announced initiative for an all-new battery electric vehicle (BEV) based on the next-generation LEAF for MMC’s North American market. Nissan and Honda will continue their collaboration in vehicle intelligence and electrification. (The proposed and aborted merger with Honda remains an historical footnote – AutoCrat).
Fourth Quarter Financial Results
In the fourth quarter of fiscal year 2024, consolidated net revenue was 3.490 trillion yen, consolidated operating profit was 5.8 billion yen, and operating profit margin was 0.2%. Net loss1 in the fourth quarter was 676 billion yen. (read AutoInformed.com on: Nissan Motor Posts Disastrous First Half Results)
FY2025 Outlook
Nissan said it expects the business to continue be challenging with intense competition, foreign exchange rates and inflationary pressure. “Yet, our efforts related U.S. Tariff policy under our mitigation strategy, we are prioritizing U.S.-built products, optimizing local capacity, reallocating tariff-exposed production, and working closely with suppliers to localize and adapt swiftly to market demands. Given the uncertainty related to tariff environment, the guidance for operating profit, net income and auto free cash flow for the fiscal year are currently to be determined.” Nissan said.
The company has filed the following fiscal year forecasts with the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2026, are:
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Nissan Motor Posts ¥670.9 Billion Net Loss
Nissan Motor Company (7201T and NSANY ADR)* today announced financial results for the full year and the fourth quarter of the Japanese fiscal year 2024, ending 31 March 2025. During FY2024, global sales remained at 3.346 million units impacted by “intensified sales competition.” Nissan’s consolidated net revenue was ¥12.6 trillion yen, resulting in an operating profit of ¥69.8 billion with a razor thin operating margin of 0.6%. Net loss was, gasp, ¥670.9 billion (~$4.5 billion), which is improved from its previous forecast of a net loss of ¥700 – ¥750 billion for fiscal year 2024. Free cash flow and operating profit in the automotive business were both negative, automotive net cash was ¥1.498 trillion. (Based on average exchange rates of 153 JPY /USD and 164 JPY /EUR for FY2024.)
Click for more.
“In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,” said Ivan Espinosa, Nissan President and CEO.
Click for more.
Nissan said that it plans more than 10,000 global job cuts. This adds to 9000 cuts announced previously. Bottom line – Nissan will cut its workforce by ~15%. Nissan now wants to cut ¥500 billion in annual fixed and variable costs. It will also reduce its number of manufacturing bases to 10 from 17.
Ominously, Nissan said it will “temporarily pause advanced and post-FY26 product activities to mobilize 3000 people to focus on cost reduction initiatives. “This reprioritization was made possible through the company’s swift implementation of a shortened development process that reduces lead time and ensures no delays in product launches,” Nissan claimed.
A key aspect of this transformation involves rethinking the supply chain. Nissan will restructure its supplier panel to secure more volume for fewer suppliers, eliminating inefficiencies and challenging legacy standards.
Nissan’s new market-specific approach will position “the U.S., Japan, China, Europe, Middle East and Mexico as key markets and adopt a customized approach to other markets.
Reinforce Partnerships
Nissan said it will collaborate with partners to deliver models that complement its portfolio and meet unique market needs. Several projects with its alliance partners, Renault and Mitsubishi Motors (MMC) are underway, including the recently announced initiative for an all-new battery electric vehicle (BEV) based on the next-generation LEAF for MMC’s North American market. Nissan and Honda will continue their collaboration in vehicle intelligence and electrification. (The proposed and aborted merger with Honda remains an historical footnote – AutoCrat).
Fourth Quarter Financial Results
In the fourth quarter of fiscal year 2024, consolidated net revenue was 3.490 trillion yen, consolidated operating profit was 5.8 billion yen, and operating profit margin was 0.2%. Net loss1 in the fourth quarter was 676 billion yen. (read AutoInformed.com on: Nissan Motor Posts Disastrous First Half Results)
FY2025 Outlook
Nissan said it expects the business to continue be challenging with intense competition, foreign exchange rates and inflationary pressure. “Yet, our efforts related U.S. Tariff policy under our mitigation strategy, we are prioritizing U.S.-built products, optimizing local capacity, reallocating tariff-exposed production, and working closely with suppliers to localize and adapt swiftly to market demands. Given the uncertainty related to tariff environment, the guidance for operating profit, net income and auto free cash flow for the fiscal year are currently to be determined.” Nissan said.
The company has filed the following fiscal year forecasts with the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2026, are:
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.